ACCC alleging misleading and deceptive door to door sales practices in Indigenous Communities

The Australian Competition and Consumer Commission (ACCC) continues to honour its undertaking to give enforcement priority to conduct adversely affecting disadvantaged or vulnerable consumers, today initiating proceedings in the Federal Court against Titan Marketing Pty Ltd (Titan) and its director, Mr Paul Giovanni Okumu. 

As reported on their website, the ACCC is alleging that since January 2011 sales representatives from Titan have been engaged in misleading and unconscionable conduct during door-to-door sales of first aid kits and water filters in communities including Indigenous communities in Queensland, New South Wales and the Northern Territory. 

Titan is also charged with breaching the unsolicited consumer agreement provisions of the Australian Consumer Law, making false or misleading representations regarding Titan’s association with a charity group, consumers’ refund rights and the value of the merchandise delivered by Titan. They are also alleged to have entered into contracts with consumers which contained an unfair contract term, giving Titan the right to spontaneously withdraw the remaining contract amount from the consumer’s bank account or credit card if the consumer missed a single payment.

ACCC Chairman Rod Sims said, “Indigenous consumer protection is a priority area for the ACCC.”

“The allegations against Titan include alleged conduct which took place in Indigenous communities, where some consumers were particularly vulnerable and did not understand the contract documents.  The ACCC will continue to take action to protect consumers in their homes from misleading and unconscionable conduct, particularly where the conduct affects disadvantaged or vulnerable consumers.”

Read more here.
 

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